The Bank of Canada has confirmed that, after two quarters of negative growth, the Canadian economy is technically in a recession although the bank would prefer to call it a “mild contraction.” The dollar is at a six-year low, mainly due to the falling price of oil and gas.
There have been persistent rumors for some time here that New York-based digital currencies exchange Coinbase is planning to expand into the Canadian market.
One of the largest exchanges in the world, and a benchmark for the NYSE’s bitcoin index NYXBT, Coinbase was named one of the 50 “Smart companies” of 2015 by MIT Technology Review.
When Bitcoin Magazine asked Coinbase’s International Expansion Head Sam Rosenblum to comment on the speculation, he would say only:
“Thanks for thinking of Coinbase… While we currently operate in 25 countries around the world, Canada is unfortunately not one of them. We certainly hope to launch our operations in Canada sooner rather than later.”
You may think Rosenblum is being coy, but he, along with other potential investors, may very well be reassessing the Canadian market in light of new economic realities and a sea change at the federal government level as every poll indicates the socialist New Democratic Party (NDP) will likely win the upcoming election.
The oil-dependent province of Alberta stunned the country earlier this year by electing the leftist New Democratic Party at the provincial level, the first time in its history.
Two things about the NDP: It loves to regulate, and it plans to abolish the Senate, whose report on regulating digital currencies will likely be ignored, if not actively flouted.
This may have given pause to any investment plans on the part of Coinbase.
QuadrigaCX currently dominates the Canadian market
For a small country, Canada has its share of digital currency exchanges with home-grown QuadrigaCX dominating the market with 80 percent